On Wednesday, the USD/JPY reached the target of the 107.00 mark. The 107.00 provided resistance and caused a retracement back down to the support of the 55-hour simple moving average.
As previously, the SMA provided support and caused a surge. By the middle of Thursday's trading, the rate was heading back to the 107.00 level.
Economic Calendar
On Thursday, the US Unemployment Claims data might affect the market. The release is scheduled to 12:30 GMT.
The week will end with the US Retail Sales data release on Friday at 12:30 GMT.
Click on the link below to find out more about the data releases.
USD/JPY short-term daily review
It is likely that the exchange rate could gain support from the 55-hour moving average near 106.60. Thus, it is likely that some upside potential could prevail in the market in the short term.Meanwhile, note that the currency pair could face the resistance level formed by the weekly R2 at 107.08. If the given resistance holds, it is likely that the US Dollar could consolidate against the Japanese Yen.
Hourly Chart
On the daily candle chart, the rate has reached the resistance of the 55 and 100-day simple moving averages, which are keeping the rate from surging. Note that these SMAs kept the rate down in late June and July until a drop of the pair started.
Daily chart
On Wednesday, traders of the Swiss Foreign Exchange had closed their long positions, as only 52% of all open position volume was long.
During Thursday's GMT trading hours, the sentiment was 51% long.
Meanwhile, trader set up pending orders in the 100-pip range were 64% to sell. Previously, the orders were 54% to buy.